Tron (TRX)

Overview of Tron

We have been in a bear market for a long time, due to the global economic situation combined with events within the crypto industry. A specific characteristic of such a period is the decline in popularity cryptocurrency Given that people have less interest in investments of a high-risk character such as cryptocurrencies, but Tron is one of the few exceptions that not only does not lose popularity, but continuously increases the value of the overall ecosystem, building new decentralized applications, which brings in numerous new investors. TRX the tron network’s main coin, is currently the seventeenth most valuable by market capitalization, and Tron as a network is the second most valuable just behind Ethereum, with a total value of $5.33 billion. The main advantage of this network is the speed and efficiency it offers compared to other networks where transactions are often expensive and extremely slow. Tron uses a proof of stake system to verify transactions, unlike Bitcoin, which of course has its pros and cons, but about that a little later. In today’s blog, we will explore what features contribute to the value of this network and whether they are sustainable in the long term, and what is the future of this unique network.

Source: cointelegraph

What is Tron?

Tron is a decentralized digital platform with its own cryptocurrency TRX. The throne was created in 2017. It was created by the Tron Foundation in Singapore. Initially, the target market of this cryptocurrency was Asia, but with the general rise in popularity of cryptocurrencies Tron became globally popular. According to the latest estimates, in August 2021. In 2001, the platform had more than fifty million users. Another interesting fact related to this network is one of its founders, Justin Sun, who is also the CEO of the famous file sharing program, BitTorrent.

Source: cointelegraph

Tron and Ethereum

The structure of the Tron network is often compared to the Ethereum platform, and uses some of the same basic building elements such as decentralized applications (dApps), smart contracts and tokens. In fact Tron has often been criticized for having most of their network completely copied from Ethereum with minimal changes. Yet Tron is in one respect more dominant compared to Ethereum. These are stable coins, as much as 50% of the total supply of Tether (USDT) is on the Tron network, while on Ethereum there is less than 40% of the total supply of this coin. The transition to using Tron instead of Ethereum is likely related to transaction fees on Ethereum. While fee prices have stabilized, they are still far more expensive on Ethereum compared to Tron. The vast majority of exchanges offer the ability to withdraw stable coins via Tron, where transaction fees are a few cents, and withdrawals via Ethereum usually require a few dollars of transaction fees. However, apart from stable coins, Tron is in no way better than Ethereum. All new decentralized applications are built on Ethereum, it’s the same with NFT collections, layer 2 networks also come to Ethereum, not Tron. The degree of decentralization of Tron is much lower than Bitcoin and Ethereum, which can lead to freezing of addresses and other unwanted centralization characteristics. In general, all innovations happen on Ethereum, not tron. To change this Tron Foudnation will need to give some initiative to developers to switch to Tron, but until then Tron is just another network that is years away from Ethereum.  

Source: cointelegraph

Data in Tron (TRX) coin

Tron (TRX) was originally launched through an ICO (Initial Coin Offering), and raised sixty million dollars from investors. Tron’s TRX coin does not have a limited amount, but there are currently just under 91 billion TRX in circulation. Below we have attached a graph showing the trx coin offering, as seen, from the beginning of 2021. The coin offering is continuously decreasing which tells us that TRX achieves deflation. This can be useful in maintaining the value and price of a TRX coin given that there is no inflation to reduce its value, as is the case with most other cryptocurrencies. The amount of steaked (locked) TRX, is also continuously increasing, which tells us that investors have confidence in the price of this coin in the long run. At the time of writing, just over 48.5% of trx coins in circulation are locked or steaked.

Source: tronscan

Conclusion

Tron (TRX) is a cryptocurrency with great potential that has not yet been fully realized. The Tron Foundation needs to encourage people, i.e. developers, to build more decentralized applications on Tron to unlock the full potential of this network. Also, the network itself needs to become less centralized and more decentralized to ensure that Tron functions according to its ideas. This means that processes such as issuing new tokens, validating transactions and decision-making should be made as decentralized as possible to ensure the transparency and security of the network, which is not the case at the time of writing this blog. One of the advantages of Tron is the relatively low cost of use compared to other cryptocurrencies, which makes it available to a wide range of users. This makes it an attractive option for people who want to enter the world of cryptocurrencies without losing too much money on transaction fees. On our Kriptomats you can buy Tron and use it to purchase other cryptocurrencies with minimal losses on transaction fees or leave it in your wallet, if you believe in the future of this project. Write to us on our social networks (Twitter, Instagram) whether you have already used Tron and what is your opinion about this project.
Until next blog.